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Black jury told Radler not a key witness

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CTV.ca News Staff

Date: Tue. Jun. 26 2007 8:11 PM ET

Conrad Black's defence, not the prosecution, has built its case on longtime Black partner David Radler, the former media magnate's trial heard.

Prosecutor Eric Sussman told jurors Tuesday at the trial in Chicago that they "do not need to believe a word David Radler told you to convict every single one of these defendants."

The prosecution got to deliver the first closing argument, followed by 4.5 days of arguments from lawyers for the four defendants.

Sussman got a chance to rebut their arguments. He will finish Wednesday, then Judge Amy St. Eve gives the jury instructions in the three-month-old white-collar crime case. After that, they can begin their deliberations.

Radler has shortcomings as a witness, he said, but "we don't pick the witnesses in this case."

Black and Radler were business partners in Hollinger for more than 30 years, starting with one small newspaper in Quebec and building up the company into one of the world's largest newspaper empires by the late 1990s.

Radler testified it was Black's idea to direct non-compete fees -- monies paid to them by newspaper purchasers to not compete by starting a new publication in that market -- to themselves from the sale of Hollinger International newspapers as a way of compensating for declining management fees.

However, Radler had no documentary evidence to back up his claims. Defence lawyers aggressively attacked him as a liar out to save his own skin.

Radler did plead guilty to one count of fraud in 2005 and was sentenced to 29 months, contingent upon whether he is seen as a truthful and helpful witness.

CTV's David Akin, covering the trial in Chicago, told Newsnet that Sussman argued none of the various defence lawyers launched a head-on attack on what he saw as the case's critical issue.

The critical issue, in Sussman's view, is why the defendants were allowed to take all this money and lie about it.

"In one transaction, Lord Black's company paid a non-compete (fee) to Lord Black so he wouldn't compete with himself. And I think just the common-sense logic of that gets the jurors asking questions," Akin said.

At one point, the defence suggested that Radler and Black, the CEO, operated different parts of the company.

Akin said that St. Eve will tell the jury the defence will not be able to rely on the so-called "ostrich defence" -- reinforcing an earlier ruling.

Reading from a copy of the judge's instructions, he quoted her as saying, "If you find the defendant had a strong suspicion that criminal conduct was occurring, yet shut his eyes for fear of what he might learn, you can conclude he acted knowingly, and acting knowingly is a crime."

The defendants have maintained that any monies paid out were done properly and disclosed to the audit committee of Hollinger International's board of directors.

Lawyers for defendants Peter Atkinson, a Hollinger executive, and Mark Kipnis, a Hollinger International lawyer, say there is no evidence against their clients.

Black faces various charges, including fraud, obstruction of justice and racketeering stemming from the alleged skimming of US$60 million from the shareholders of Hollinger International.

Once deliberations begin, the jury will meet in a large room near the courtroom and will have access to documents entered as evidence at the trial and to all witness testimony.

According to U.S. law, jurors must reach a unanimous vote for either a guilty verdict or an acquittal on each count filed against each defendant.

With files from CTV's David Akin and files from The Canadian Press

From the Canadian Press: Some facts about the trial of Conrad Black on fraud and racketeering charges:

The Accused:

  • Conrad Black, 62, former chairman and CEO of newspaper publisher Hollinger International: Nine counts of mail and wire fraud. Three separate counts of wire fraud relating to abusing company perks, one count of money laundering (dropped), one of obstruction of justice, one violation of U.S. Racketeer Influenced and Corrupt Organizations Act and two counts of tax fraud.
  • Jack Boultbee, 63, former Hollinger chief financial officer and chartered accountant: Nine counts of mail and wire fraud, three separate counts of wire fraud relating to abusing company perks and two counts of tax fraud.
  • Peter Atkinson, 59, former Hollinger vice-president and general counsel: Six counts of mail and wire fraud and two counts of tax fraud.
  • Mark Kipnis, 60, corporate secretary in Hollinger International's Chicago headquarters: Nine counts of mail and wire fraud, two counts of tax fraud. 

Trial Started: Jury selection began March 14. Opening arguments began the following Monday, June 19.

Judge and jury: Judge Amy St. Eve. Eighteen jurors including six alternates; three were dismissed. A final 12-person panel will make decision.

Jury out: June 26

Prosecutor: Eric Sussman, 37, lead prosecutor in four-person team hand-picked by Patrick Fitzgerald, the U.S Attorney for the Northern District of Illinois. Presented more than 700 documents and 31 witnesses.

Defence: Eddie Greenspan, 63, Black's lawyer and long-time acquaintance. U.S. lawyer Ed Genson, 65. Arguments lasted 25 hours by six different lawyers.

- Canadian Press

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